GBP/USD Forex Signal

Adam Lemon DailyForex.com

Yesterday’s signals were not triggered, as there was no bearish action when the price reached 1.3145.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades may only be entered before 5pm London time today.

Short Trades

Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3174 or 1.3217.
Place the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 25 pips in profit.
Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.

Long Trade

Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3140.
Place the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is 25 pips in profit.
Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.

The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.

GBP/USD Analysis

I wrote yesterday that this was the most interesting major currency pair at present, with the looking likely to advance to the next level at 1.3145. I was right about taking a bullish bias above 1.3100, which paid off with this pair being the major mover yesterday.

Over the medium-term, this pair still looks like the most bullish or bearish of all the majors, in the bullish direction. However, we are starting to see some short-term changes which suggest that this situation is not likely to last. I think if the price can break below 1.3140 soon, we are likely to see a deeper bearish retracement today, with no support levels close below that to hold up the price.

There is nothing important due today concerning either the GBP or the USD.

Author

Adam Lemon

DailyForex.com

Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment.

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